Overseas "brokers" are still trying to trick New Zealanders out of their money.
Wednesday, July 28th 2004, 9:20AM
by The Landlord
"If people are contacted out of the blue by someone from overseas, they should be very suspicious," says Norman Miller, Director of Enforcement at the Securities Commission.
"We've had a lot of enquiries over the last few weeks about a company called Bradley Chen & Associates. The company offers people a share swap, which seems quite tempting. People may want to exchange worthless shares for better ones, but this isn't a genuine offer," Norman Miller says.
"An up front fee in the form of a guarantee is part of the transaction. If people pay the fee, they are unlikely to see their money again."Norman Miller is concerned that this particular entity has gone to some trouble to make their offer look genuine, by using the name of a bona fide company in their share offer, Irvine North Credit Union Limited (based in Scotland). Although this company does exist, it has no connection at all with Bradley Chen. Nor does it have a website, or a London office, as claimed by Bradley Chen.
"Our UK counterpart, the Financial Services Authority (FSA), has issued a warning about Bradley Chen. The company is not licensed to operate in the UK. A copy of the warning issued by the FSA is attached.
"We strongly encourage any New Zealander who wants to buy overseas shares to do so through a local intermediary which is accountable under New Zealand law."
The Securities Commission website (www.sec-com.govt.nz) lists overseas brokers who have contacted New Zealanders with dubious share offers. Bradley Chen has been added to that list.
Contact: Catherine Chapman ph 471 7659
28 July 2004
News Release - New Zealand Securities Commission
